Little Caesars franchisees file lawsuit over food stamp program

Jan. 18, 2012

A group of Little Caesars franchisees has sued the federal government over a decision by the U.S. Department of Agriculture that removed the company from the food stamp program.

According to the Willamette Week, local USDA officers in Portland, Ore., granted the restaurants' acceptance of food stamps for the brand's take 'n' bake line in 2010. That decision, however, was revoked a few months later, after officials found that only 5 percent of one pizza shop's revenues came from selling cold pizza, and that the operations shared a kitchen.

To qualify for the program, Little Caesars operators had to set up separate companies and cash registers to handle the "take 'n' bake" pizzas, and demonstrate that not more than half of their revenues came from selling hot foods.

The franchisees filed suit on Jan. 10, asking to invalidate the decision.

From the story:

The franchises argue "withdrawal will have a detrimental effect not only on the business...(but) on store employees, a number of whom may lose their jobs if (food stamp) authorization is taken away, and area [food stamp] recipients, many of whom rely on (Little Caesars) take-n-bake offerings to at least in part satisfy their nutritional needs."

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Topics: Customer Service / Experience, Food & Beverage, Little Caesars, Operations Management

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